This is according to Andy Morris, CEO at Cirencester Friendly (pictured), who sat down with Health & Protection last month.
One of the key commitments in Labour’s election manifesto is to “double the size of the UK’s co-operative and mutuals sector” and “work with the sector to address the barriers they face, such as accessing finance”.
Morris, who is also the vice chairman of the Association of Financial Mutuals, told Health & Protection that for Labour to turn their aim into a reality they will have to work with bodies such as the AFM.
“So one of the things that’s helped to promote that is the Law Commission Review of the Friendlies Society’s Act where they are also looking at building societies. They’re also looking at cooperative laws as well.
“So this is breaking down the barriers to enable growth but also enable access to capital, sources of financing. So I’m actively involved in collaboration with the AFM to try and find ways that we can grow the sector on a more tangible basis.”
Removing restrictive regulation
But Morris added another issue is improving regulation and legislation so that we can compete on a level playing field with companies.
“That’s particularly the Companies Act,” he continued.
“None of that is going to be massively exciting, it’s in the detail and regulation. But to be able to raise finance, to be able to grow the business, to be able to improve the ability to do transfers and engagement, to remove some of the restrictive rules and regulations – that can actually really boost growth.
“Not withstanding that, getting the mutuals message out there for the Labour Party, or indeed any party, talking about mutuals and how they can offer an alternative business model, that’s not in place of the business model but it’s more of a diverse financial services environment.”
Learning from Europe
Morris also maintained there are lessons to be learned from Continental Europe.
“You look to Continental Europe, you’ve got France on 50% mutual, a number of the other countries, the Netherlands. If we can look to those examples of where mutuals are thriving in a modern capitalist economy, then why not? That would be my view of that,” he added.
“And the All Party Parliamentary Group on mutuals have made that point previously and I think championing that is something I’m all in favour of.
“I do think any politician is going to come to the industry and look to the industry to come up with ways of producing that growth so we’re actively engaged in achieving that.”